The Tories have been criticized lately for putting their party logo on some non-negotiable jumbo novelty cheques. While I agree that the practice of associating party brand so explicitly with public money should stop, let’s remember that news is “man bites dog” not “dog bites man” and there are true masters of pushing the partisan envelope still around.

We see that Warren Kinsella’s old boss said something about pepper on his plate and the parliamentary press gallery had a chuckle and then hit Hy’s for some more vino. However, Andrew McIntosh and Joel-Denis Bellavance from the National Post were on the job and cast some light on Jean Chretien’s partisan abuse of public dollars.

PM comfortable using grants for partisan reasons: ‘nothing to be ashamed’

National Post
Sat Feb 19 2000
Page: A8
Section: News
Byline: Andrew McIntosh and Joel-Denis Bellavance
Column: In Ottawa ; in Quebec City
Dateline: OTTAWA; QUEBEC CITY
Source: National Post

OTTAWA and QUEBEC CITY – Jean Chretien, the Prime Minister, yesterday said his government had nothing to apologize for in seeking to reap maximum partisan political benefit from disbursing $1-billion worth of federal job grants across Canada each year.

He had always made sure since taking power in October, 1993, that voters were left in no doubt that it was his Liberals who were distributing such grants, he said.

“Listen,” he added, “we are the government … I don’t see why we can’t try to get credit for what we do. I hope we do so. There is nothing to be ashamed in that.”

Previously, Mr. Chretien and Jane Stewart, the Human Resources Minister, have insisted in Parliament that the $1-billion in grants for job creation, training, literacy and other projects were not allocated with the intention of gaining partisan advantage, but rather were designed to benefit ridings regardless of their political complexion.

The prime minister, joined by Paul Martin, the Finance Minister, told a news conference that increasing reports of the financial mismanagement at Human Resources Development Canada would not tarnish his government’s fiscal credibility.

The National Post reported yesterday that Peter Donolo, the prime minister’s former director of communications, created and ran a well-oiled public relations campaign to ensure that Liberals — ministers and MPs — took maximum credit for job creation grants across the country.

Job creation money is at the centre of accusations that Human Resources grants were mismanaged and improperly used as a slush fund to win votes and reward loyalists.

Opposition MPs were stunned by Mr. Chretien’s performance in Quebec City, saying that the Liberals will suffer politically if the prime minister continues to deny the seriousness of the HRDC mess.

“It’s pretty brazen,” said Diane Ablonczy, a Reform party MP form Calgary. “Clearly, Mr. Chretien has no shame or contrition for mismanaging taxpayers’ money and abusing the public trust. Canadians won’t forget that at election time.”

Peter MacKay, the Conservative House leader, said, “The prime minister has flipped his wig. He has demonstrated once again he is completely out of touch with reality and he is displaying increadible arrogance by trying to minimize this serious problem.”

Mr. Chretien conceded that there were “obvious” management problems at HRDC, which were condemned in a scathing departmental audit published last month, and that these must be rectified.

The prime minister said, “Of course, there are problems, but we have to place the problem in a certain perspective. We have to make regular adjustments on the basis of recommendations by those people who conduct the audit. It’s a huge department that has over 20,000 employees … There’s no doubt that it’s an extremely difficult department to manage. What strikes me is that no recipient has complained thus far. To go and say that it’s a scandal, one must not exaggerate.”

The prime minister denied, despite a number of documented cases, that Liberal MPs sought extra pre-election advantage by announcing new grants just before the 1997 general election and before the grants were officially approved.

In the House of Commons, the Liberals suffered another verbal pounding over the financial scandal. The opposition claimed that a newly disclosed 1997 review reveals that there was political interference in the approval of Transitional Jobs Fund projects. It showed, the opposition said, that the Liberals used the $100-million-a-year program to buy votes.

Aside from finding incompetence, the audit concluded that HRDC bureaucrats were pressured by political operatives to speed through approval for projects that “did not meet TJF elgibility criteria.” Several were found not to be failing to create jobs.

Mr. MacKay, the Nova Scotia Tory, questioned whether Ms Stewart could be trusted, saying: “Daily the minister of HRDC subjects Canadians to the sad spectacle of self-destruction with the documented mishandling and mismanagement of taxpayers money that was uncovered by the internal audit, the subsequent fallout, the spin-doctoring, the witholding of information, the manipulation of statistics and the sliding scale of eligibility.”

Ms. Stewart brushed off his call for her to resign. She later produced a letter showing that after she became HRDC minister, she removed herself from all decision-making about grants in her riding, Brant, Ont., by delegating her power to approve them to her top bureaucrat, Claire Morris, the HRDC deputy minister.